Estée Lauder filed a lawsuit against Walmart in the federal court in California on Monday, February 9, accusing the retail giant of selling counterfeit perfumes and skincare products from Estée Lauder’s brands, including Clinique, Tom Ford, and La Mer.
According to a report by Reuters on February 10, Estée Lauder stated in the lawsuit that the counterfeit products sold by Walmart on its website have packaging that is identical to Tom Ford, Le Labo, Clinique, La Mer, and Aveda products.
The cosmetics company is seeking compensation for losses from Walmart but did not disclose the specific amount. They also requested the court to order Walmart to stop selling these counterfeit products.
On Tuesday, a spokesperson for Walmart did not immediately respond to Reuters’ request for comment. Representatives and lawyers from Estée Lauder also did not respond to requests for comment.
Estée Lauder, headquartered in New York, has seen growth in its perfume business with the increasing popularity of brands like Le Labo and Tom Ford among Generation Z consumers.
The lawsuit alleges that Walmart has “taken almost no measures on its website to ensure that only authorized genuine products are sold,” leading to the sale of counterfeit products that could easily confuse consumers.
Based in Bentonville, Arkansas, Walmart became the first retailer to surpass a market value of $1 trillion earlier this month, expanding through its e-commerce platform.
Estée Lauder’s lawsuit accuses Walmart of trademark infringement, selling counterfeit goods, and false designation of origin, all related to the alleged sale of counterfeit products.